Loblaw to resume charging suppliers fines on light shipments even as second wave looms
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“To satisfy our customers’ expectations, we need the products we order to arrive on time and in full,” Thomas said. “For every vendor affected by COVID, we have many who are not. Common sense will rule in cases where we need to be flexible.”
To satisfy our customers’ expectations, we need the products we order to arrive on time and in full
Loblaw spokesperson Catherine Thomas
Graydon at FHPC, which represents suppliers, said Loblaw appears to be the first to broadly announce a return to the fines, though some competitors have done so, too.
“Increases in fines and penalties, as we try to address all of the demand of food, of course, diverts our time and energy from producing as much food as possible as we focus on ensuring our customers are happy,” said Av Maharaj, chief administrative officer at Kraft Heinz Canada, a major Loblaw supplier.
During the demand spikes this spring, Kraft Heinz and other manufacturers had to stop making less popular products so their production lines could focus on making more of their biggest sellers.
For example, the Kraft Dinner line temporarily stopped making flavours such as Sharp Cheddar so its Montreal plant could produce more boxes of Original and Extra Creamy.
Maharaj said he worries that manufacturers could be hit with fines if they have to cancel certain products again to keep pace with demand spikes.But he also stressed that a major rise in COVID-19 cases in Canada won’t wreak the same havoc on the food chain as it did this spring.
“The increase in demand that is expected will not be so high as that we believe that we cannot supply,” he said. “We believe we have the capacity to meet the needs of Canadians.”
Financial Post
